Urban Outfitters resists call to diversify its board

Urban Outfitters is facing a proposal by Connecticut's treasurer to put more women and minorities on its corporate board. Lalitha Naveen, a corporate governance specialist at Temple's Fox School of Business, said demanding diversity will not necessarily add value to the firm. "In fact, it often will detract from a firm's value, because you’re forcing the firm not to go out and find the best possible directors for the job. You're just forcing them to stick to some kind of template," Naveen said, adding that this type of change does not prevent CEOs from "stacking" boards with people who support his or her agenda.
May 16, 2011 | KYW News Radio